Analysis by an industry leader has examined how the type of borrower affects the likelihood of a mortgage default

Pepper has introduced a new product suite, while raising its maximum loan amounts to $2.5m.

The lender has announced a 'PLUS' product range, an extension of the Flexi Advantage and Self-Employed Advantage product lines that are currently on offer to brokers.

The 'PLUS' products will now accept borrowers with up to two defaults - paid or unpaid - less than 12 months old. The loans will also take borrowers with up to two months of current mortgage arrears.

Both the Flexi Advantage PLUS and Self-Employed Advantage PLUS will also lend up to $1m.

In another change to its existing product range, Pepper has raised the LVR cap on its standard Self-Employed Advantage product to 85%. The lender has also introduced jumbo loan amounts, and is now lending up to $2.5m on its traditional Flexi Advantage and Self-Employed Advantage products.